Rather than dash for growth, we have taken a conservative approach to borrowing. That strategy has helped produce a pleasing record of no defaults on loans over nearly four years of operation and well over £10 million of facilitated loans across a book of 51 separate offerings. Although these numbers are relatively modest, compared to some players in the peer-to-peer (P2P) space, they do offer scope for diversification – an important way of reducing risk. Our friends at P2P Finance News report recent research that confirms the benefits of diversification.

PEER-TO-PEER analysis firm 4th Way is urging investors to diversify after stress testing revealed the odds of losing money in a severe recession can be 10 times higher in some cases when lending to just one borrower on a P2P platform...

The research added that all the losses on bad loans are either partly or completely offset by interest earned over the years on good loans, and by any additional protection in place, such as reserve funds to cover expected bad debts. Re-lending in the years prior to and after the recession further lowers the risk, 4th Way said.

We currently have one A-rated, fixed-term loan on site, with a fixed rate of 8 per cent and a term of three years; it is presently 13 per cent bid – and will close when filled. Another A-rated loan, from Seascape (five-year term, yield of 9 per cent) is expected on site soon. Its predecessor closed yesterday.

If you haven't made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment. Capital is at risk, once loaned.